Housing Benefit rules changed on 5 October 2026, allowing some working-age people in supported housing or temporary accommodation to keep more support towards their rent when they earn money.
Eligible new and existing claims should be updated automatically, so there is no separate application for the new earnings allowance.
The Department for Work and Pensions announcement says more than 325,000 residents could benefit.
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That does not mean 325,000 claimants will all get a higher payment: the change only affects earnings calculations for people in qualifying accommodation.
Who qualifies for the new rules
The new allowance applies to working-age Housing Benefit claims where the claimant lives in qualifying supported or temporary accommodation and they or their partner have employed or self-employed earnings.
For supported housing, the rules use the legal term “specified accommodation”.
The official guidance lists four categories: exempt accommodation, managed properties, refuges and local authority hostels. Each has conditions about the provider, accommodation or support.
A home does not qualify simply because somebody calls it supported housing. For example, having support that could follow you to any ordinary rented home does not make that home specified accommodation.
Qualifying temporary accommodation is provided by a council, or a social housing provider under arrangements with a council, to carry out homelessness duties or prevent homelessness. It is not simply a private rental with a short tenancy.
Ask your council’s Housing Benefit team which category your home falls into if you are unsure.
How much of your earnings is ignored
Councils now leave out an extra amount of weekly earnings when calculating eligible Housing Benefit. This is called an earned-income disregard.
The regulations, as amended before the start date, set these amounts:
| Household | Extra weekly earnings ignored |
|---|---|
| Single person or lone parent under 25 | £61.41 |
| Single person or lone parent aged 25 or over | £77.73 |
| Couple where both are under 18 | £97.33 |
| Couple where at least one is 18 or over, but both are under 25 | £61.53 |
| Couple where at least one person is 25 or over | £119.70 |
These amounts sit on top of the normal earnings disregard you qualify for. Other earnings disregards still have their own conditions. The total ignored cannot be more than the earnings available to count.
There is no minimum-hours requirement for this new allowance. For a couple, it is one allowance shared between partners, rather than a separate amount for each person.
What could this mean for your money
A single person aged 25 or over can have an extra £77.73 of weekly earnings left out of their Housing Benefit calculation. That is not an extra £77.73 payment.
It could mean they retain more Housing Benefit than under the old rules. How much depends on their earnings, rent, household and other income.
Someone already receiving the maximum Housing Benefit for their circumstances may not see a payment increase.
The change addresses a problem for people receiving Universal Credit for living costs and Housing Benefit separately for rent. GOV.UK explains why these two benefits can be paid together in certain supported or temporary housing.
As earnings rose, Universal Credit reduced. When it ended, the Housing Benefit earnings calculation could leave some people with less money overall, despite earning more. The government describes this sudden drop as a “cliff edge”.
The extra allowance is intended to soften that change. It does not make Housing Benefit’s rules identical to Universal Credit or stop benefits reducing as earnings rise.
Who will not see a change
The new rules apply to working-age Housing Benefit. Pension-age Housing Benefit rules have not been changed by this measure.
They also do not introduce a new earnings allowance for:
- Housing Benefit claims for accommodation outside the qualifying groups
- people whose rent is covered by the usual Universal Credit housing element
- people renting somewhere privately on a temporary basis without the qualifying council arrangements.
If you have no earnings, there is nothing for the new allowance to ignore. It could become relevant if you or your partner later start work.
Do you need to apply or report anything
DWP’s instructions to councils say the new rules apply automatically to eligible new and existing claims from 5 October. Existing claimants do not need a fresh claim just to receive the disregard.
You must still report changes to your earnings, job, household or accommodation in the usual way. Automatic application does not mean your council automatically knows your wages have changed.
Check your next decision notice or calculation. If you work, make sure the council has your current earnings and your partner’s earnings, where relevant.
Does Universal Credit change?
This measure changes Housing Benefit, not Universal Credit. It does not create a new UC work allowance. Universal Credit can still reduce under its normal earnings rules.
DWP says no group is made worse off by this change itself. Your payments can still fall because of increased earnings or other changes to your circumstances.
Supported housing and temporary accommodation get the same new amounts. The difference is the test for whether the accommodation qualifies.
The rules described here cover England, Scotland and Wales. Separate Northern Ireland regulations introduce the same five amounts from 5 October.
What to do if your Housing Benefit looks wrong
In England, Scotland and Wales, contact your council’s Housing Benefit team and ask for an explanation of your calculation. Check that it has used the right accommodation category and earnings details.
If you live in Northern Ireland, contact the Northern Ireland Housing Executive instead. It can explain your calculation and tell you how to challenge a decision.
You can ask: “Does the new earnings disregard from 5 October 2026 apply to my claim, and has it been included?”
If you disagree with the decision, ask for a review or appeal.
Act promptly: the usual appeal deadline is one calendar month from the date of the decision. Check your decision letter for the exact process and deadline.
GOV.UK explains the review and appeal options and lists Citizens Advice and Shelter as sources of free help.
If rent or other bills are becoming difficult, our guide to help when you cannot pay your bills gives you places to start.
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